Restructuring officers of bankrupt New York property developer All Year Holdings Ltd. proposed a settlement Friday to address a dispute with a major investor by selling eight properties from the company’s Brooklyn real-estate portfolio, WSJ Pro Bankruptcy reported. The proposed settlement filed with the U.S. Bankruptcy Court in Manhattan would resolve claims by investor Gary Katz and his Downtown Capital Partners that All Year owed him as much as $100 million on preferred equity instruments he holds. All Year has said it owes Mr. Katz about $57 million. As repayment, the company has offered to transfer managerial control of a corporate affiliate, All Year Equity Partners, to Mr. Katz, who could then sell its eight apartment buildings within five years. Mr. Katz would get the bulk of the proceeds. All Year could receive about $5 million down the line, according to court papers. Judge Martin Glenn of the U.S. Bankruptcy Court in New York is expected to hold a hearing on the settlement proposal in late January. All Year, owned by developer Yoel Goldman, filed for chapter 11 last month to protect itself from potential litigation in the U.S. and Israel while continuing negotiations with creditors owed nearly $1.6 billion in debt, made up of about $800 million in bonds issued on the Tel Aviv Stock Exchange and $760 million in mortgage loans.
